On Your Team. Toward Your Goal. UNIFI Companies Retirement Plans

Transcription

1 FIDUCIARY investment safeguard SM On Your Team. Toward Your Goal. UNIFI Companies Retirement Plans RP /08

2 FIDUCIARY INVESTMENT SAFEGUARd SM Let us help. Fiduciary Investment Safeguard is our warranty that the retirement plans offered by UNIFI Companies Retirement Plans are prudent investments. At the same time, plan participants benefit from a diversified, well-balanced plan that offers a broad range of investment options that are appropriate for long-term retirement objectives. Best of all, it s free in plans offered under our group variable annuity contract. Think of Fiduciary Investment Safeguard SM as our pledge. By meeting certain requirements and by incorporating a fund from each of the asset classes in our investment platform, plan participants will enjoy the benefits of a well-balanced plan. In addition, Fiduciary Investment Safeguard assures plan sponsors that they are satisfying key fiduciary responsibilities. Fulfilling Key Responsibilities One of the plan sponsor s most important responsibilities is to adhere to a prudent process for selecting and monitoring the investment line-up of its plan. As a prudent fiduciary, a plan sponsor needs a process that is definable and specific in its selection criteria. It must also be equally specific about its on-going monitoring processes. UNIFI Companies Retirement Plans is committed to maintaining our quantifiable and qualitative due diligence process for the selection and monitoring of the investment portfolios available to our plan sponsors. Selection and Monitoring UNIFI Companies Retirement Plans Investment Selection Evaluation System is a stringent process that combines the expertise of investment and financial professionals from our Investment Products Group and Morningstar Associates, LLC. Every investment option must first pass a rigorous screening process to be part of our platform. Once selected, on-going monitoring evaluates each investment option s performance for meeting long-term retirement objectives and remaining a part of the platform. Gaining Your Confidence What does this mean to you as the sponsor of a qualified plan? You can feel confident that your plan s investment portfolio is being reviewed regularly by financial professionals. It also means you and your plan participants can be certain that the investment line-up available is suited for long-term retirement objectives retire.unificompanies.com RP /08

3 Our Pledge Many companies profess to conduct a high level of review and monitoring. At UNIFI Companies Retirement Plans, we pledge to stand behind our process by indemnifying you as a plan sponsor for reasonable losses due to the outcome of legal action as a result of: 1. Breach of the prudence requirement of ERISA. 2. Failure to offer a broad range of investments as stated in ERISA Section 404(c) regulations. 3. Funds whose investment objectives are not reflective of a long-term retirement strategy. Fiduciary Investment Safeguard is available at no extra cost that s how committed we are to our investment process and to you, our valued client! Fiduciary Investment Safeguard Requirements Our warranty applies only to investments offered under our group variable annuity contract. Plan sponsors must select and maintain at least one investment in each of the asset classes that are part of the Morningstar Asset Allocation portfolios as well as investments to satisfy the Department of Labor s Qualified Default Investment Alternative definition, such as target maturity or lifecycle funds. To meet the fiduciary requirement of prudence and monitoring, the plan sponsor must document its review of the plan s investments quarterly. UNIFI Companies Retirement Plans provides a report that details the investment platform s performance. This report helps satisfy this critical fiduciary monitoring requirement. It must be made part of the plan s investment review and documented accordingly retire.unificompanies.com UNIFI Companies Retirement Plans is an affiliation of Ameritas Life Insurance Corp. and The Union Central Life Insurance Company s retirement plans divisions. These companies offer the retirement plans products and services of the UNIFI Companies. For more information about UNIFI Companies, visit UNIFIcompanies.com. Each UNIFI Company is solely responsible for its own financial condition and contractual obligations. Morningstar Associates, LLC has provided data and tools for use by Ameritas and Union Central Life and their representatives in the development and use of asset allocation models. Morningstar Associates, LLC is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Neither Morningstar Associates, LLC nor Morningstar, Inc. is acting as an investment advisor with respect to the use of the asset allocation product. Although the data is gathered from reliable sources, neither Morningstar Associates, LLC nor Morningstar, Inc. guarantees their accuracy. Morningstar Associates, LLC is not affiliated with UNIFI Companies UNIFI Mutual Holding Company

4 UNIFI Companies Retirement Plans Fiduciary Investment Safeguard SM UNIFI Companies Retirement Plans stands by our selection and monitoring processes for all our investment alternatives. As a result, under this Fiduciary Investment Safeguard, we will reimburse you for your reasonable losses (outlined below) for three specific claims: Scope Failure to comply with the prudence requirement under ERISA Section 404(a)(1)(B); Failure to comply with the requirement to offer a broad range of investments under Labor Regulation Section (c)-1(b)(3); or Failure to offer funds that are appropriate for long-term investing for a retirement plan under Labor Regulation Section a-1. This Fiduciary Investment Safeguard only applies to assets held within the Allocated Group Annuity Contract ( Annuity Contract ) offered by either The Union Central Life Insurance Company or Ameritas Life Insurance Corp. (For example, indemnification would not apply to any other investment alternatives offered outside the Annuity Contract including but not limited to employer stock (whether or not publicly traded), an individual brokerage account, or common/collective trust.) Selection Requirement In order to be eligible for reimbursement, the plan sponsor must select (and make available to plan participants) from among the investment alternatives offered under the Annuity Contract the following: (1) at least one investment alternative from each of the Morningstar asset classes contained in the Morningstar Asset Allocator portfolios and (2) a Qualified Default Investment Alternative that satisfies Labor Regulation Section c-5(e). In the event an investment alternative is eliminated from the Annuity Contract, the plan sponsor is responsible for selecting a replacement investment alternative to satisfy this selection requirement. UNIFI Companies Retirement Plans will supply notice of any investment alternative elimination and provide a listing of appropriate replacements. Monitoring Requirement In order to be eligible for reimbursement, the plan sponsor must provide written proof of committee minutes of the advisory/ investment committee or other responsible plan fiduciary quarterly meetings to review the Fund Performance Review. Other Requirements For purposes of this Fiduciary Investment Safeguard, reasonable losses will mean: the reasonable costs associated with litigation, including, but not limited to, attorney s fees and any actual losses or judgments incurred, to the extent such losses are not otherwise reimbursable (e.g., insurance, bond, etc.). Further the Fiduciary Investment Safeguard will only be applicable for a properly adjudicated loss, i.e., not for voluntary settlements without the consent and acquiesce of the appropriate UNIFI Company. The Fiduciary Investment Safeguard is made only by the UNIFI Company from which an Annuity Contract is purchased and is limited to losses incurred for those types of claims identified above. The appropriate UNIFI Company must be promptly notified of the claim and given the right to: (1) direct (or at its election participate in) the defense, (2) appoint defense counsel, and (3) settle the claim. UNIFI Companies Retirement Plans is an affiliation of Ameritas Life Insurance Corp. and The Union Central Life Insurance Company s retirement plans divisions. These companies represent the retirement plans products and services of the UNIFI Companies. RP /07

5 Additional Provisions Fiduciary Investment Safeguard The following additional provisions and terms apply to the Fiduciary Investment Safeguard (the Safeguard ) provided by UNIFI Companies Retirement Plans: The Safeguard applies to only the current plan sponsor of a qualified retirement plan (the Plan Sponsor ). To be eligible for the Safeguard, the Plan Sponsor must have a current Agreement for Services provided in relation to an Allocated Group Annuity Contract ( Annuity Contract ) issued by either Ameritas Life Insurance Corp. or The Union Central Life Insurance Company, and must satisfy the monitoring, selection, and other requirements described on the preceding page of the Safeguard and the conditions set forth below. The Safeguard extends only to claims, losses, liability, and expenses incurred by a Plan Sponsor as a result of: (1) failure to comply with the prudence requirement under ERISA Section 404(a)(1)(B); (2) failure to comply with the broad range of investments requirement regulations under ERISA Section 404(c); or (3) failure to offer funds appropriate for long-term investing for a retirement plan pursuant to Labor Regulation Section a-1(collectively referred to as a Covered Claim ). The Safeguard does not extend to other fiduciary responsibilities the Plan Sponsor may have or other claims or liabilities that may arise in connection with the plan, including but not limited to bad investment returns or losses, reasonableness of expenses, or the suitability of a particular investment option for a particular participant. Further, we do not hereby guarantee the return (positive or otherwise) of any investment alternative, as past performance is not a guarantee of future result. To the extent the Plan Sponsor may incur both a Covered Claim and other claims, losses, liability or expenses in connection with a retirement plan, the Safeguard shall apply only to the extent of the Covered Claim and not further. UNIFI Companies Retirement Plans will defend and indemnify the Plan Sponsor for all reasonable costs and expenses associated with the defense or settlement of any Covered Claim, and will pay any final award or settlement resulting from such Covered Claim made under the Safeguard, provided that the Plan Sponsor satisfies the provisions set out in this Safeguard. To receive the benefits of the FIS Indemnity, the Plan Sponsor must: (1) Provide prompt written notice to UNIFI Companies Retirement Plans upon learning of the Covered Claim, (2) Give UNIFI Companies Retirement Plans full control of the action and proceedings, including sole right of settlement, (3) Provide UNIFI Companies Retirement Plans reasonable cooperation in the defense or settlement negotiations, and (4) Obtain written approval from UNIFI Companies Retirement Plans prior to incurring any expenses. If the Plan Sponsor has any insurance policy or bond which may provide coverage for the Covered Claim, the Plan Sponsor must make an appropriate claim under such insurance or bond, and provide a copy of such policy to UNIFI Companies Retirement Plans. In this case, UNIFI Companies Retirement Plans will coordinate with such insurance or bond company in the defense or settlement of the Covered Claim. These provisions set out the entire liability of UNIFI Companies Retirement Plans for any Covered Claim. The Safeguard is not insured or approved by any state or federal government or regulatory agency. The Safeguard is not an insurance policy or product. The Safeguard is an additional service commitment that UNIFI Companies Retirement Plans makes available to their eligible Plan Sponsors and is backed by the general assets of the specific UNIFI Company (either The Union Central Life Insurance Company or Ameritas Life Insurance Corp.) pursuant to your retirement plan services agreement. The Safeguard is not applicable to any change in the law that occurs after the plan sponsor qualifies for the Safeguard. The UNIFI Companies Retirement Plans is an affiliation of Ameritas Life Insurance Corp. and The Union Central Life Insurance Company s retirement plans divisions. These companies represent the retirement plans products and services of the UNIFI Companies.

6 retire.unificompanies.com UNIFI Companies Retirement Plans is an affiliation of Ameritas Life Insurance Corp. and The Union Central Life Insurance Company s retirement plans divisions. These companies offer the retirement plans products and services of the UNIFI Companies. For more information about UNIFI Companies, visit UNIFIcompanies.com. Each UNIFI Company is solely responsible for its own financial condition and contractual obligations UNIFI Mutual Holding Company